For salaries, the net income is calculated as the gross salary reduced by:
- the mandatory social security contributions (the mandatory employee contributions are 9.18% of the gross salary) and
- 10% on the amount net of social security contributions (the 10% deduction is a deduction for professional expenses), capped at TND 2,000.
The gross salary includes the value of the benefits in kind (e.g. lodging, car, transportation, meals, school money, medical expenses, insurance).
The benefits in kind are valued at their actual value, which is the real cost paid by the employer. In case an allowance is granted to the employee, the amount of the said allowance should be used to estimate the advantage value (i.e. the rent indicated in a rental contract, the school money actually paid).
With regard to a company car, the value is either the lease amount or, if the car is under the ownership of the company, estimated at TND 100 per month, which is the value of the allowance granted to government officials and employees in the state-owned companies.
Benefits in kind granted for transport are exempted from WHT for companies incorporated in regional development zones.
The calculation of business net income depends on the category of the revenue.
The net income of a given category of revenue is to be determined according to specific rules applicable to that category.
For non-commercial professions, net profit constitutes the difference between the gross proceeds realised in the course of the civil year and the expenses necessary to the operation during the same year for persons maintaining accounts according to the accounting legislation into force.
However, individuals realising non-commercial income may choose to be taxed on the basis of a lump-sum profit equal to 80% of their realised gross receipts.
Newly created individual companies, incorporated in 2018, 2019, or 2020, are entitled to a four-year exemption from the activity start date, subject to some conditions including mainly the start of the activity in a period of two years from the investment declaration submission and the maintenance of accounts as required by the Tunisian accounting law.
For salaries, see Employment income above.
For foreign-sourced income, the taxable basis constitutes the income that has not been subject to tax in the state of origin.
See Capital gains taxes in the Other taxes section for information on the taxation of capital gains.
Dividends distributed by Tunisian-resident companies are subject to PIT at the rate of 10%, paid as:
- a discharging WHT for individuals, regardless of the residency criteria, or
- an advance on the income tax for resident individuals in case the distributed dividends do not exceed TND 10,000.
Dividends distributed by non-Tunisian tax resident companies are subject to tax in Tunisia, unless they were subject to a similar tax in the state of source.
Interest income is subject to income tax as part of the total net income, unless expressly exempt (e.g. interest from deposits and from certificates in foreign currencies and convertible dinars).
Rental income earned by non-Tunisian resident persons and related to properties based in Tunisia is subject to PIT on the basis of 70% of the gross receipts.
Exempt income includes the following:
- Life annuities and temporary allotments granted to victims of labour accidents or to their heirs.
- Life annuities granted in representation of damages and interest by virtue of a judgement for the reparation of a bodily loss.
- Allowances, indemnities, and loans granted under any form in application of a legislation relative to social assistance, insurance, and social security.
- Unemployment indemnities, within certain limits fixed by the law.
- Special allowances intended to cover expenses inherent in the function or employment of workers, to the extent they are justified.
- Interest from deposits and from certificates in foreign currencies or convertible dinars.